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Cash-out calculator

Cash out on a rental refinance equals the maximum new loan, property value times the maximum LTV (loan-to-value), less the payoff of the loans it replaces and any closing costs paid from it. Assumed example: $400,000 × 75% = $300,000 maximum loan; less a $200,000 payoff and $6,000 in costs leaves $94,000. Your lender sets the LTV; the calculator assumes none.

Cash out = value × max LTV − payoff − closing costs

Your numbers

Current market value, e.g. the appraised value.
Maximum loan-to-value for a cash-out refinance, as your lender quotes it. No default is assumed.
Payoff of every loan the new loan retires.
Costs financed into the new loan, if any.Optional

Result

Enter the property value, the maximum LTV and the payoff to see the cash out and each step.

Next step

Check these numbers with a loan officer

These results are only as good as the numbers you enter. A loan officer can run the same property through a lender's own worksheet.

Have readyValue estimate or appraisalPayoff statementYour lender’s maximum cash-out LTV

Have a loan officer check your rental's numbers

Method

The maximum loan is the property value times the loan-to-value ceiling. The payoff of the loans being replaced, and any closing costs paid from the new loan, come off the top. Whatever remains is the cash out. If the payoff and costs exceed the maximum loan, the cash out is $0.

Maximum loan = property value × maximum LTV
Cash out = maximum loan − payoff − closing costs

The calculator uses the same formulas as the worked deals in the analyses, so a figure here and the same figure there agree to the cent.

Questions investors ask

  1. Where does the maximum loan come from?

    Property value times the maximum LTV you enter. Double either one and the maximum loan doubles with it.

  2. Why does it show $0 cash out?

    The payoff plus closing costs is at or above the maximum loan, so nothing is left to pay out. The steps show by how much the payoff runs over.

  3. Which maximum LTV should I enter?

    The cash-out LTV your lender quotes for this property. It varies by lender, program and property type, so we leave it blank rather than guess.

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